Presidio Bay, a leading, innovative Bay Area-based commercial real estate development and investment firm, today announces the acquisition of 60 Spear Street (60 Spear) in San Francisco’s South Financial District. Closing at $40.93 million, it serves as the city’s first large-scale office purchase this year and is a further testament of Presidio Bay’s commitment to champion the revitalization of downtown San Francisco. The team plans to transform and expand the building’s current footprint to a 170,000-square-foot, Class-A trophy office building with exceptional design and hospitality-driven amenities. Senior Director Erik Hanson and Senior Managing Director Robert Hielscher of JLL represented the Seller in the transaction of 60 Spear.
“We have remained optimistic about the San Francisco office market and saw 60 Spear as a phenomenal opportunity in a prominent downtown location that will attract quality tenants who are seeking a unique product,” says K. Cyrus Sanandaji, Founder and Managing Principal of Presidio Bay. “Though we acknowledge the formidable challenges that confront San Francisco, we have already witnessed substantial improvements in these areas and believe that a true urban renaissance is unfolding within the city. We are proud to stand at the vanguard of tackling and championing these issues, evident in our dedicated investments and wholehearted support for policy reform. Our acquisition indicates our unwavering dedication to provide an unparalleled, premium experience for commercial tenants who share our belief in San Francisco’s fundamental appeal of innovation, creativity and community.”
While San Francisco has seen its fair share of challenges over the last few years, its residents, businesses and elected officials, have remained focused on improvements to invigorate a place that is globally renowned for its resiliency and recovery throughout prior downturns. According to CBRE’s Q2 2023 office report, tenant demand stood at 4.5 million square feet, a 36 percent increase from the previous quarter. The acquisition of 60 Spear comes at an opportunistic time, especially with hybrid and full-time return-to-office continuing to increase, coinciding with the explosive growth of the artificial intelligence industry that is taking place in the heart of San Francisco and is expected to be one of the next major drivers in economic growth, employment and demand. Meanwhile, the political landscape is dramatically moderating heading into next year’s election cycle as the city faces increased calls from the public to immediately address matters of public safety, cleanliness, economic growth and urban revitalization.
“The acquisition of 60 Spear by Presidio Bay is not just a significant investment in our city’s real estate; it’s a vote of confidence in San Francisco’s vibrant future,” said Mayor London Breed. “We’ve weathered challenges before, and as we stand at the precipice of a new era, downtown revitalization efforts like this signal our collective commitment to a resilient and flourishing San Francisco. Our city has always been a beacon for innovation, diversity, and cultural richness. This endeavor further emphasizes that the heart of San Francisco beats strong, filled with potential and promise. Together, with partners like Presidio Bay, we’ll ensure a prosperous and dynamic future for our beloved city.”
Originally built in 1967, 60 Spear is currently an 11-story office building with a total square footage of 157,436sf. The building is 30% occupied and is anticipated to be entirely vacant by summer 2025. This offers Presidio Bay a pristine canvas to create a truly distinct and elevated experience for tenants, employees, and guests, capitalizing on destination-driven placemaking features. Such amenities are notably scarce even in the San Francisco Class A, Trophy office market, as the office market has historically seen sustained tenant demand, eliminating the pressing need for landlords and developers to invest heavily in competitive amenities. With a side core layout, 14’-16′ clear ceiling heights and highly efficient floor plates that are surrounded with three sides of natural light overlooking the Bay Bridge and the Transbay Center, 60 Spear’s attractive fundamental offerings will be enhanced by wellness, productivity and entertainment related amenities. This will include a fully operated spa with cold and warm plunges, saltwater floating pools, steam/sauna rooms, state-of-the-art fitness center, an all-hands conference and employee entertainment areas, co-working lounges, premium lobby experience with an integrated café bakery, and San Francisco’s first and only rooftop bar and restaurant located in the Financial District with protected views of the Bay and the city.
Located in San Francisco’s South Financial District, 60 Spear boasts a prime spot renowned for its walkability and a plethora of transit options. This district is the nexus for global finance, venture capital, and technology entities. Additionally, its proximity to the Federal Reserve, which operates its own police force, ensures heightened security in the vicinity. Just a short walk away is the iconic Ferry Building, a city landmark frequented by millions annually. Future tenants of 60 Spear can indulge in a vast array of shops, dine in fine establishments, and visit The Ferry Plaza Farmers Market. They will also benefit from unparalleled access to the Ferry terminal, BART, and The Embarcadero.
For project updates on 60 Spear, please visit www.presidiobay.com. For opportunities relating to San Francisco, Presidio Bay’s Cyrus Sanandaji is a valuable voice and advocate. He is currently involved in various efforts to revitalize the city and has an op-ed featured in the San Francisco Business Times: Viewpoint: Is there a path forward in San Francisco’s self-inflicted housing crisis?
